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Question 1: ZZZ Inc. has two divisions. Contribution margins for Divisions A & B were $80,000 and $180,000 respectively. Division A has a contribution margin ratio of 50% while Division B has a contribution margin ratio of 50%. Total fixed costs were $100,000 of which $20,000 were common fixed costs. The remaining fixed costs were allocated as follows: 40% to Division A and 60% to Division B. What was Division A's segment margin?
Option a) $36,000
Option b) $32,000
Option c) $30,000
Option d) $ 48,000
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